Portugal downgraded for second time

Portugal's Prime Minister Jose Socrates, who resigned this this week, at an EU summit, on March 25, 2011 in Brussels. STORY HIGHLIGHTSStandard & Poor's cut Portugal's credit rating by two notchesPortugal's credit standing is now close to junk statusPortugal's borrowing costs are now at euro-era highs RELATED TOPICSEuropean PoliticsEuropean EconomyFinancial Rescue PlansPortugal (FT) -- Standard & Poor's has cut Portugal's credit rating by two notches, warning that the country's political crisis heightened the risk that it would be unable to refinance its debt.

S&P's downgrade in Portugal's long-term credit rating from A- to BBB is the lowest attributed by any rating agency, bringing Portugal's credit standing closer to junk status.

S&P also warned that it could cut Lisbon's rating by a further notch depending on the outcome of negotiations on the eurozone's bail-out fund.

S&P's decision on Thursday night came hours after Fitch Ratings downgraded Portugal's long-term rating by two notches from A

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